Once again, due to geopolitical turbulence, Europe faces another energy crisis.
As in 2022, after the Russia's illegal invasion of Ukraine, prices of crude oil and petroleum products have increased significantly worldwide.
And fuel bills in the EU are skyrocketing.
This is putting a strain on our companies and on our households.
In spite of the difficult situation, markets have shown remarkable resilience over the past months.
Refineries have played a vital role in ensuring security of supply, by producing the fuels that the market needs – including jet fuel.
Nevertheless, as the International Energy Agency has pointed out,
We expect the global diesel market to remain tight, well into 2027. And this will keep prices high.
So we can't stand still.
With a challenging geopolitical reality and pressing security needs in Europe,
We must ensure reliable supplies for our citizens, businesses, & defence.
And we must ensure that these supplies are affordable.
This is why, from the Commission's side, we have decided to initiate this important dialogue with European refineries.
Over the last two decades, around a quarter of EU refineries were shut down, decreasing domestic refining capacities by around 10%.
Divestments have accelerated in Europe.
But this crisis is a wake-up call:
We need to counter this trend and ensure that we have adequate and flexible refining capacity in Europe. Today and for the future.
This is not just a matter of economic competitiveness. It is also a matter of security.
Because we know too well that dependencies are dangerous.
We know that this winter will be difficult for European citizens and for our economy in general.
And we are doing whatever we can – in close cooperation with our Member States and the energy sector - to address the immediate impact on prices, while continuing the work to lower energy prices structurally.
Today's dialogue has been very fruitful, but it's been a first step.
We will now continue the work at the technical level and reconvene early next year to take stock of the progress.
We will work to increase outputs from refining assets in Europe. The industry has made some suggestions that we need to assess.
Because ultimately, we need to bring fuel prices down.
And this is very important for the short-term - to alleviate the pressure on our companies and citizens.
But the work does not stop in "here and now" of the crisis.
Crises are also opportunities and this is why we will also looking at the future of the refining sector in Europe.
Refining is strategic – diesel and jet fuel are essential for mobility, the broader economy and defence.
We need to create an environment that supports sufficient domestic fuel production in Europe as well as long-term viability of European refining as the EU decarbonises.
Looking further into the future, refineries and new entrants need to embark on a pathway of producing more bio and e-fuels.
The production of renewable liquid fuels has already compensated some of the reduction in Europe's refinery capacity. The potential is significant.
In the coming years, this production will help us to further reduce risks from fuel imports.
This is why, together with the sector, we will work on a joint roadmap on its transformation and contribution to the EU's security objectives and in line with our climate ambition.
